Hear me out on this one...

[ebaybob]

I think the recent (today) demise of Silver State Helicopters bodes well for flying as a profession. It appears that the reason SSH went under was that student loans it needed to keep students flying are drying up. I think the same thing will happen to fixed wing schools soon as well. How many guys can afford to go to ATP or other such schools and pay cash...likely almost none. If SallieMae and Key Bank stop writing loans to students because investors refuse to later buy the loan-backed paper it will shrink the supply of pilots. I think this will first be felt (soon) at the regional level and that any shrinking of flying will be easily offset by reduced supply of pilots. Maybe management will have to start treating pilots like the professionals they are and compensation / QOL will improve. What do you think? Am I off track on this one??

 

[zasca]

Nobody used to buy mortgages and student loans in the equity markets until recently, I don't think the loans will dry up because of that. The interest rates on them should be going down as the fed drops the rates.

 

[gator_hater]

Most of those loans are tied to the LIBOR (London Interbank Rate), Historically quicker to raise rates and slower to drop them. Just like a gas stations and the cost of a barrel of oil.

 

[Amish RakeFight]

Flight schools open and close all the time.

What angers me is that I have witnessed a few suddenly close their doors without warning to the customer and taken all of their block money on account. That is despicable.

 

[John Pennekamp]

What's Silver State Helicopters?

 

[flylike44]

you are an idiot if you're putting large blocks of money down on account at any flight school. there are too many examples of people losing their shirts when some of these schools go out of business overnight. fool me once, shame on you...fool me twice...

 

[viper548]

I believe they were a large helicopter training school in Sacramento, CA (MCC). I think they had some sort of job guarantee after training

 

[Amish RakeFight]

you are an idiot if you're putting large blocks of money down on account at any flight school. there are too many examples of people losing their shirts when some of these schools go out of business overnight. fool me once, shame on you...fool me twice...

I wouldn't call them idiots. Most are unfamiliar with the pitfalls found at many flight schools. If you're like most students looking to reduce some of the costs involved with flight training, you'll put down several thousands for reduced-rate block time. This is quite common from what I have seen.

Some places which offer complete programs normally require that the student put a certain percentage down prior to beginning their training.

One place I instructed at a few years ago had all the signs of closing down, yet the boss wouldn't admit it to the employees. I broke out before it's ultimate demise but I know that they hustled tens of thousands from unsuspecting students.

Personally, it breaks my heart to see people spend so much money to learn how to fly. It is such a financially prohibitive activity that only those who have the financial resources can engage in this privilege.

 

[flylike44]

if you are unfamiliar with the pitfalls of doing such a thing, then familiarize yourself with the pitfalls of doing such a thing. it wouldn't take very long at all to find the info you'd need. i worked at a school that closed its doors under cover of darkness and it was ugly. i was shocked at how much money some students handed over just to save a few bucks on block rates and instruction. sad, yes. easily preventable? hell yes.

 

[propsarebest]

They are based in LAS but had schools in something like 31 states.

I believe they were a large helicopter training school in Sacramento, CA (MCC). I think they had some sort of job guarantee after training